Iowa Admin. Code r. 701-285.8 - Taxation of Native Americans

(1) Definitions.

"Native Americans" means all persons who are descendants of and who are members of any recognized tribe.

"Settlement" means all lands recognized as a tribal government settlement or reservation within the boundaries of the state of Iowa.

(2) Retail sales tax-tangible personal property. Retail sales of tangible personal property made on a recognized settlement to Native Americans who are members of the tribe located on that settlement, where delivery occurs on the settlement, are exempt from tax. Retail sales of tangible personal property made on a recognized settlement to Native Americans where delivery occurs off the settlement are subject to tax. Retail sales of tangible personal property made to non-Native Americans on a recognized settlement are subject to tax regardless of where the delivery occurs. Sales made to non-Native Americans are taxable even though the seller may be a member of a recognized settlement.

(3) Retail sales tax-services. Sales of enumerated taxable services and sales made by municipal corporations furnishing gas, electricity, water, heat, or communication services to Native Americans who are members of the tribe located on the recognized settlement where delivery of the service occurs are exempt from tax. Sales of enumerated taxable services or sales made by municipal corporations furnishing gas, electricity, water, heat, or communication services to Native Americans where delivery of the services occurs off a recognized settlement are subject to tax.

(4) Off-settlement purchases. Purchases made by Native Americans off a recognized settlement are subject to tax if delivery occurs off the settlement. Purchases made by Native Americans off a recognized settlement are not subject to tax if delivery is made on the settlement to Native Americans who are members of the tribe located on that settlement.

This rule is intended to implement Iowa Code section 423.3.

Notes

Iowa Admin. Code r. 701-285.8

ARC 8157C, IAB 7/24/24, effective 8/28/24